Key facts
- A draft US-Iran peace deal proposes lifting western sanctions on Iranian oil, petrochemicals, and related services.
- Shipowners believe Iranian oil will eventually be transported on mainstream vessels, moving away from "shadow fleet" ships.
- The return of Iranian crude to the global market could increase demand and support crude tanker rates.
- China's independent refiners were major importers of Iranian crude prior to sanctions.
- The potential lifting of sanctions could incentivize countries to purchase Iranian crude.
The non-sanctioned crude tanker market may experience increased demand if a proposed peace deal between the US and Iran leads to the removal of sanctions that have impacted Iranian oil exports for years. Shipowners attending the Marine Money Conference in New York suggested that Iranian crude, currently transported on older, less-insured "shadow fleet" vessels to circumvent sanctions, could transition to mainstream tankers.
A leaked draft of a 14-point memorandum between the US and Iran reportedly includes provisions for lifting western sanctions and issuing waivers for Iranian crude, petrochemical products, and associated services like banking, insurance, and transportation. Jerry Kalogiratos, chief executive of Capital Tankers, stated that once Iranian oil is treated like other non-sanctioned crude, there will be less incentive to use substandard ships.